Glass’s Price May Not Pick Up Obviously

Post Time：Mar 12,2012Classify:Industry NewsView：250

(China Glass Network) Excess capacity and real estate’s weak demand will continue to restrict price performance of glass in the short term. The improvement of future industry trend results from two aspects. First, more and more enterprises stop production, the supply will continue to drop. And the manufacturers stopped production for old kilns and nervous capital chain.

Judging from recent research on glass enterprises, flat glass enterprises will not choose to stop production without fracture risk of capital chain. It exists two reasons. Foremost, the cost of stop production is so high. Moreover, manufacturers expect that demand will increase and price will pick up after entering busy season. So it is predicted that only a few enterprises will choose to stop production in the short term.

Secondly, the demand rises again. Considering the situation of real estate, high inventory and supply pressure, the price of glass may pick up slightly. Now it exists15-20 flat glass production lines which hasn’t been started producing. It will form new supply pressure in the future market, restricting industry improving continuously.

More than 90% of flat glass enterprises suffered losses. We judge that the turn point will appear at the end of the second quarter. Only when the stock drops significantly, price of glass will rise obviously.